LAUSANNE, Switzerland (AP) — In a legal victory over UEFA, AC Milan is back in the Europa League after the Court of Arbitration for Sport overturned a ban imposed for overspending.

The court said Friday the punishment was "not proportionate" following a takeover completed last week, even though UEFA was right to judge Milan had broken financial monitoring rules.

The seven-time European champion had failed to approach breaking even on player transfers and wages over several seasons in which it failed to qualify for the top-tier Champions League.

UEFA was ordered to review the case and apply a "proportionate disciplinary measure," the court said in an urgent ruling.

Milan's reprieve was largely due to the takeover by a United States-based hedge fund which last year provided key finance to a Chinese-led purchase of the storied club.

In a statement Friday, European soccer body UEFA noted without comment that the case returns to the judging section of its club finance panel.

The verdict was given Friday without detailed reasons from a three-judge panel, one day after a hearing at the highest court in world sports.

An urgent ruling was needed because the case affected Italy's entry in the Europa League second qualifying round next week.

Milan's legal win restores the club's place in the group stage which kicks off in September. Atalanta, which placed seventh in Serie A, goes back into the qualifying rounds and plays Sarajevo in a first-leg game in Bosnia-Herzegovina on Thursday. Fiorentina, which placed eighth last season, is now withdrawn from the Europa League.

Milan broke UEFA's financial fair rules which monitor finances over a three-year assessment period of all clubs qualifying to enter the Champions League or Europa League.

When it was banned last month, Milan said it failed to break even on soccer-related business in the period from July 2014 to June 2017 — before its spending spree one year ago.

Milan spent more than 200 million euros last year (then nearly $250 million) on new players. This was despite questions over the financial stability of the Chinese-led consortium that purchased the club from former Italian prime minister Silvio Berlusconi for $800 million in April 2017.

The team finished sixth in Serie A, missed out on the four Italian places in the Champions League, and qualified for the Europa League.

However, the court said UEFA had not "properly assessed" some relevant points in Milan's case, and the club's finances improved after the takeover.

Elliott Management has promised to inject 50 million euros ($66 million) in capital.

Former owner Li Yonghong missed a deadline to repay part of a loan worth more than 300 million euros ($350 million) from the hedge fund. Elliott repossessed the holding company in Luxembourg that Li used to buy Milan.